Business, 10.06.2020 12:57 NathanaelLopez

On January 1, Year 1, a company issues $39.1 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.
Bond amountInterest paymentMarket interest ratePeriods to maturityIssue price
A. If the market rate is 9%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1).
Bond amountInterest paymentMarket interest ratePeriods to maturityIssue price
If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1).
Bond amountInterest paymentMarket interest ratePeriods to maturityIssue price

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On January 1, Year 1, a company issues $39.1 million of 9% bonds, due in 20 years, with interest pay...

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